For financial institutions, the main technology challenge has been and always will be the problem of providing clear, relevant information on the whole enterprise to senior management. In large, multi-national institutions with multiple technology systems, gaining a coherent view of the financial position and risk faced by the organization will always be difficult. At the same time, this viewpoint is vital for effective risk management and improving performance.
The particular circumstances of the financial services sector make this challenge especially difficult:
- A spiraling growth in the three Vs of data (volume, variety, velocity)
- Regulatory pressures are also forcing firms to submit more information more often
- Regulatory data management standards and increased sanctions for non-compliance.
This means that while improving data management and business intelligence (BI) has been on the horizon of financial institutions for some time, it is now becoming a matter of urgency. Regulatory requirements mean that firms need to do more with less for compliance, ensuring that they are able to organize and submit more data at more frequent intervals. More importantly, with profit margins under pressure and significant threats to the sector remaining, firms need to become risk intelligent to enhance risk management and improve performance.
To achieve this, financial institutions need reliable data to ensure that decision-makers get the information they need. The goals of data management and business intelligence systems must be first to ensure that all relevant data is collected, validated, and available, and then that this data is converted into practical information that is available to support senior management. This will mean integrating data from across the enterprise and breaking down silos. Firms will need to invest seriously in robust data management and BI solutions that can give them an enterprise viewpoint.
This report covers the competitive landscape for data management and business intelligence systems for risk management. This report also covers the data management and BI capabilities and market position of IBM. Chartis believes IBM to be one of the leading vendors in the data management and BI for risk marketplace.